Regulatory Analysis of International Electricity's Transactions between Colombia and Venezuela

Decision 536 of the Andean Community establishes that any International Electricity's Transactions between countries that have signed this agreement must be carried out based on terms of free market mechanisms. By this, the regulatory organizations of Venezuela should determine the schemes that will lead the electric system of the country in these types of transactions. This work analyses different regulatory schemes of generation and transmission areas, with the principal objective of defining the appropriate scheme for Venezuela. Finally the best scheme for the International Transactions of Electricity between Colombia and Venezuela is proposed.